There is a simple answer to the question: When Should I Start Saving for Retirement? The answer is IMMEDIATELY! It is never too soon to start putting money away for your retirement.
Ideally you should start saving in 20’s when you first leave school and start earning your first paychecks. The sooner you begin saving, the more time your money has to grow with compound interest. If you are past your 20’s, it’s not too late for you - you will just need to take a more aggressive approach to saving then someone in their 20’s. Start saving immediately - sign up for your company’s 401(k). Get educated as to what makes sense for your personal situation - your age, your income level and your retirement goals.
I’m sure there are plenty of reasons that you haven’t started to save yet. In this economy especially most people need every penny from their paycheck. If you’re struggling to make ends meet and pay the mortgage, a 401(k) may seem difficult if not impossible. But, you must plan for the future - even if it means contributing a small amount to start the process.
All contributions to your 401(k) are done pre-tax so your paycheck will see less of a reduction. Once you are comfortable with you initial small contribution, increase that amount each year until you are at the amount recommended by your financial advisor to meet your retirement needs. Retirement is expensive. Experts estimate that you’ll need at least 70% of you income to retire comfortably.
Sit down with a financial advisor to go over what your needs will be when you retire and they will be able to help you figure out how much you need to contribute to your 401(k) to obtain that goal. Do your research, get educated and start saving immediately!